Laguna Woods condo selling for $1

Dec. 17, 2012

Updated Aug. 21, 2013 1:17 p.m.

1 of 1

The Towers is the only high-rise building in Laguna Woods. The 14-story towers, built in 1974, have 311 units, including 38 studios. The penthouses have 1,800 square feet. PHOTO COURTESY OF LAGUNA WOODS VILLAGE

The Towers is the only high-rise building in Laguna Woods. The 14-story towers, built in 1974, have 311 units, including 38 studios. The penthouses have 1,800 square feet. PHOTO COURTESY OF LAGUNA WOODS VILLAGE

A buck. That's what it costs to buy a tiny condo in Laguna Woods, listed for just $1.

The sellers even will pay $1,500 for new paint and carpeting if you take this 500-square-foot condo off their hands. "Amazing steal," the listing states.

The studio on the fourth floor of The Towers complex enjoys western views and is "just the right size." It has a Murphy bed that pulls down at night and vanishes by day, a kitchenette with a refrigerator and a walk-in closet.

"Gourmet" dinners, maid service and utilities are included.

So what's the catch?

The unit is located in Orange County's Laguna Woods retirement community, so you have to be 55 or older to live there. Homeowners association dues cost $1,718 a month.

Listing agent Cathy Flores said she has received more than100 calls about the unit, including many from out of state, but no offers.

Many callers lose interest when told the condo is in a retirement community and has a $1,718-a-month homeowners association fee, said Flores of Century 21 Award in Rancho Santa Margarita. She has shown the property several times, but the would-be buyers wanted more space.

Most callers ask if the property has been trashed. Not so, Flores said. The carpet is worn, and the unit needs fresh paint. That's the reason for the carpet and paint credit. But otherwise, it's in good shape, she said.

"It is a good deal, but it's not a good investment," Flores said. "It's really for someone looking to enjoy the amenities in Laguna Woods."

The monthly fee is the main reason the owner needs to sell quickly, Flores said.

Flores said the 95-year-old owner no longer lives there. The unit is vacant and has cost the owner's trust $6,872 in fees just since the property came on the market in August.

"Unfortunately, the family trust has received the property, and there's a large overhead," Flores said.

The owner paid $39,000 for the condo in 2005. Five other studios are listed in the complex with prices ranging from $4,000 to $4,500, according to the online real estate site Redfin.com. Two one-bedroom units are listed for $9,000 apiece.

The trust first listed the unit for $499, according to Redfin.com. The price dropped to $1 on Sept. 20.

The Towers consists of 311 units in two 14-story buildings that, according to the community's website, "rise above the manicured grounds and rolling landscape of Laguna Woods Village." Thirty-eight of the units are studios. It's the only high-rise in Laguna Woods, and Flores said it's like a resort hotel.

Many of its residents have jobs and enjoy the worry-free life of daily meals and maid service, said Wendy Bucknum, Laguna Woods' government and public affairs manager. The fourth-floor unit is not the first in The Towers to go on the market for $1. Some units are abandoned and taken over by the homeowners association.

"Those assessments, if you're not using it, can be quite expensive," Bucknum said.

The owner's trust could stop paying the HOA and let the association take over the unit. But Bucknum said they face possible legal action if the association tried to recover unpaid fees.

Currently the unit is the only property listed for $1 in the California Regional Multiple Listing Service, which includes 35 Realtor associations from Southern California to just north of Chico.

A similar unit on the fifth floor of The Towers went on the market for $1 for 46 days in 2008, but there's no record it ever sold, said Steve Thomas of ReportsOnHousing.com.

If the current listing does sell, the trust will pay the buyer's and seller's agents a flat commission of$750 apiece.

That's a good thing. If Flores and the buyer's agent were to get the typical commission, they would split about 6 cents between them.

User Agreement

Keep it civil and stay on topic. No profanity, vulgarity, racial
slurs or personal attacks. People who harass others or joke about
tragedies will be blocked. By posting your comment, you agree to
allow Orange County Register Communications, Inc. the right to
republish your name and comment in additional Register publications
without any notification or payment.